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Accounting for peak shifting in traditional cost-benefit analysis

Author

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  • Snarr, Hal W.
  • Axelsen, Dan

Abstract

When cost-benefit analysis fails to account for peak-shifting the benefits of road improvement options are miscalculated. Using theory from transportation economics, we derive a simple model that disaggregates the average daily equilibrium into peak, counter-peak, and off-peak equilibria. This paper demonstrates how accounting for peak-shifting improves the performance of cost-benefit analysis.

Suggested Citation

  • Snarr, Hal W. & Axelsen, Dan, 2007. "Accounting for peak shifting in traditional cost-benefit analysis," MPRA Paper 37060, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:37060
    as

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    File URL: https://mpra.ub.uni-muenchen.de/37060/1/MPRA_paper_37060.pdf
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

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